The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

2025 ET - Japanese stocks are lower in early trade as uncertainty about the Iran conflict and higher borrowing costs continues. Auto, steel and financial stocks are leading declines. Toyota Motor is down 2.6%, Nippon Steel is 3.3% lower and Nomura Holdings is down 2.8%. The dollar is at 157.45 yen, compared with Y157.63 as of Monday's Tokyo stock market close. Investors are closely watching developments in the Middle East, oil prices and bond yields. The Nikkei Stock Average is down 0.8% at 65373.77. (kosaku.narioka@wsj.com; @kosakunarioka)

1946 ET - Asian currencies consolidate against dollar but may be weighed by rising oil prices that could prompt further Fed rate increases that bolster the appeal of U.S. fixed-income assets. "The U.S. and Iran remained far apart on a deal, with Iranian officials reportedly pessimistic about reaching an agreement before U.S. midterm elections in November," CBA's Carol Kong says in a research report. "The prolonged closure of the Strait of Hormuz threatens to sustain elevated energy prices, adding to inflation pressures and reinforcing the case for further Fed tightening," the economist and currency strategist adds. The dollar is little changed at 157.35 yen and is 0.1% lower at 1,358.27 won, LSEG data show. (ronnie.harui@wsj.com)

1945 ET - Australian stocks look set to edge higher as investors wait on what is widely expected to be a resumption of interest-rate rises by the country's central bank. ASX futures are up by less than 0.1% ahead of Tuesday's session, suggesting that the S&P/ASX 200 benchmark index could lightly add to its week-opening 0.2% rise. Economists and traders expect the Reserve Bank to raise the cash rate by 25 basis points later Tuesday. Ahead of the open, REA Group said it had agreed to buy a 35% stake in an Ireland-based counterpart. Cochlear said it would defend a class action representing shareholders aggrieved at its profit forecasting over its last fiscal year. (stuart.condie@wsj.com)

1944 ET - Asian currencies consolidate against the dollar but may be weighed by rising oil prices that could prompt further Fed rate increases that bolster the appeal of U.S. fixed-income assets. "The U.S. and Iran remained far apart on a deal, with Iranian officials reportedly pessimistic about reaching an agreement before U.S. midterm elections in November," CBA's Carol Kong says in a research report. "The prolonged closure of the Strait of Hormuz threatens to sustain elevated energy prices, adding to inflation pressures and reinforcing the case for further Fed tightening," the economist and currency strategist adds. The dollar is little changed at 157.35 yen and is 0.1% lower at 1,358.27 won, LSEG data show. (ronnie.harui@wsj.com)

1901 ET -- Retailers in the U.K. have maintained promotions and reduced prices to help drive demand, keeping inflation lower than a year ago, according to a report by the British Retail Consortium and Nielsen IQ. For the period from Sept. 1 to Sept. 7, shop price inflation dropped to 1.4% compared with 1.5% in August. "Retailers have absorbed wave after wave of extra costs, but there is a limit to what businesses can shoulder," BRC's chief executive, Helen Dickinson, says. These include rising employment costs, energy bills and packaging taxes, she adds. The retail sector will still need to absorb cost increases wherever possible, as household budgets will get tighter in the final quarter of the year, the report says. (andrea.figueras@wsj.com)

1824 ET [Dow Jones]--The Reserve Bank of Australia will likely further its campaign to tame inflation with an announcement of a 25 basis-point interest rate increase at 0430 GMT. The bank is expected to indicate further action is likely, taking the official cash rate to its highest level since 2008 by November. An increase will represent a second phase of the tightening cycle that has been forced on the RBA by the unresolved war in the Middle East. There are domestic forces at work also, but the biggest issue is soaring energy prices and the threat that inflation is again headed higher, not lower. (james.glynn@wsj.com; @JamesGlynnWSJ)

1553 ET - U.S. bond market continue to sell off, pushing yields higher, as oil prices remain volatile amid conflicting headlines between the U.S. and Iran. The U.S. 10-year yield rose to 5.241%, the highest level since June 2007. The two-year U.S. Treasury yield reached 4.922%, its highest yield since May 2024. The 30-year Treasury yield touched 5.561% the highest yield since June 2002. Federal Reserve governor Lisa Cook said she expects continuing inflationary pressure from the build-out of artificial intelligence in the coming months. Tuesday brings a slate of Fed speakers who may weigh in on their decision to raise interest rates at the September meeting. (jessica.coacci@wsj.com)

1420 ET - The scope of revisions to historical Canadian population estimates may mean the federal government will need more aggressive cuts in non-permanent resident immigration numbers to meet its 2027 target, Desjardins suggests. Given that students have borne the brunt of declines so far, Desjardins says other categories such as temporary foreign works may be in focus unless changes are made to the target. (robb.stewart@wsj.com; @RobbMStewart)

1407 ET - Bitcoin is down 0.8% to $83,904, coming down from around $87,000 last week. Bitcoin rose to its highest since late January, and has the legs to push even higher, says CK Zheng of ZX Squared Capital. "I believe Bitcoin's current four-year bear market cycle is near its end," says Zheng. "The cycle's bottom was mostly reached in June 2026." Heading into 2027, bitcoin is expected to continue its rebound - potentially reaching a new all-time high of $150,000 before the end of 2027. "Typically, Bitcoin performs extremely strongly during the first year of the cycle," says Zheng. (kirk.maltais@wsj.com)

1239 ET - Deep divides still remain in U.S./China relations following last week's summit between President Trump and Chinese leader XI. Tariff cuts on goods under the U.S.-China Board of Trade mechanism, the so-called "30-for-30" lists of products, are good for trade between the two nations, says Leah Fahy of Capital Economics in a note. But it doesn't make the trading relationship between the two much stronger, she says. "All told, while Xi's trip to the U.S. delivered slightly more than it first seemed, the gains were modest and largely in line with pre-summit expectations," says Fahy. "With the truce on a short leash and congressional hawkishness showing no signs of fading, the U.S.-China relationship remains fragile." (kirk.maltais@wsj.com)

1220 ET - Analysts project that September's slowdown in payroll growth shouldn't interfere with the Fed's plan to remain focused on inflation. Upcoming revisions to the central bank's preferred measure, PCE will come this Wednesday. "The revisions shouldn't impact the near-term policy path, since the Fed was likely already accounting for them," says an analysis from BofA. Economists polled by The Wall Street Journal expect 83,000 jobs added in September. A note from Oxford Economics projects payroll growth to increase by a lower 50,000, with the biggest swing occurring in leisure and hospitality, suggesting the last report's increase was due to seasonal noise.(jessica.coacci@wsj.com)

1220 ET - Analysts project that September's slowdown in payroll growth shouldn't interfere with the Fed's plan to remain focused on inflation. Upcoming revisions to the central bank's preferred measure, PCE will come this Wednesday. "The revisions shouldn't impact the near-term policy path, since the Fed was likely already accounting for them," says an analysis from BofA. Economists polled by The Wall Street Journal expect 83,000 jobs added in September. A note from Oxford Economics projects payroll growth to increase by a lower 50,000, with the biggest swing occurring in leisure and hospitality, suggesting the last report's increase was due to seasonal noise.